Error message
  • Warning: array_flip(): Can only flip STRING and INTEGER values! in EntityCacheControllerHelper::entityCacheLoad() (line 73 of /srv/www/drupal7/sites/all/modules/entitycache/includes/entitycache.entitycachecontrollerhelper.inc).
  • Warning: array_flip(): Can only flip STRING and INTEGER values! in EntityCacheControllerHelper::entityCacheLoad() (line 73 of /srv/www/drupal7/sites/all/modules/entitycache/includes/entitycache.entitycachecontrollerhelper.inc).
  • Warning: array_flip(): Can only flip STRING and INTEGER values! in EntityCacheControllerHelper::entityCacheLoad() (line 73 of /srv/www/drupal7/sites/all/modules/entitycache/includes/entitycache.entitycachecontrollerhelper.inc).
  • Warning: DOMDocument::loadHTML(): Attribute width redefined in Entity, line: 7 in po_news_analytics_fix() (line 1972 of /srv/www/drupal7/sites/all/modules/_custom/urban_utils/urban_utils.module).
  • Warning: DOMDocument::loadHTML(): Attribute height redefined in Entity, line: 7 in po_news_analytics_fix() (line 1972 of /srv/www/drupal7/sites/all/modules/_custom/urban_utils/urban_utils.module).
  • Warning: array_flip(): Can only flip STRING and INTEGER values! in EntityAPIController->load() (line 219 of /srv/www/drupal7/sites/all/modules/entity/includes/entity.controller.inc).

Land market imbalance causing localised price pressures: Robert Papaleo

Land market imbalance causing localised price pressures: Robert Papaleo
Land market imbalance causing localised price pressures: Robert Papaleo

GUEST OBSERVER

The Reserve Bank of Australia’s latest Statement on Monetary Policy (May 2015) referenced unique data from Charter Keck Cramer and the National Land Survey Program (NLSP) to highlight imbalances between the strength of purchaser demand and scarcity of developable land supply in capital city greenfield land markets.

The land markets are a critical input into the housing industry and with the decline in the mining sector, investment in new housing is becoming increasingly relied upon to support the domestic economy’s growth. This land market imbalance is also causing localised lot price pressures, especially in Sydney, and will ultimately impact opportunities for dwelling investment and undermine potential growth in the domestic economy.

New housing supply is clearly being supported by historically low interest rates and is further evidenced by the NLSP’s observation of 50,000 lot sales in the year ending March 2015 across the capital cities, which is at peak levels and will to continue to drive high levels of new housing construction.

New housing supply across Australia is also being underpinned by historic high levels of new apartment supply. Charter’s unique insight into the Core apartment markets of the capital cities highlights that there are currently 98,000 apartments under construction or being marketed.

Land market imbalance causing localised price pressures: Robert Papaleo

Robert Papaleo is National Executive Director of market intelligence firm Charter Keck Cramer. He can be contacted here.

Tags: 
Economy

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?